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Capital Southwest Corporation (CSWC)

Upturn stock ratingUpturn stock rating
$20.66
Last Close (24-hour delay)
Profit since last BUY0.34%
upturn advisory
Consider higher Upturn Star rating
BUY since 4 days
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  • SELL Advisory (Loss)​
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Upturn Advisory Summary

06/16/2025: CSWC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

ratingratingratingratingrating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

7 Analysts rated it

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Year Target Price $22.81

Year Target Price $22.81

Analyst’s Price TargetsFor last 52 week
$22.81Target price
Low$16.05
Current$20.66
high$24.68

Analysis of Past Performance

Type Stock
Historic Profit 20.57%
Avg. Invested days 40
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/16/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.20B USD
Price to earnings Ratio 14.88
1Y Target Price 22.81
Price to earnings Ratio 14.88
1Y Target Price 22.81
Volume (30-day avg) 7
Beta 1
52 Weeks Range 16.05 - 24.68
Updated Date 06/30/2025
52 Weeks Range 16.05 - 24.68
Updated Date 06/30/2025
Dividends yield (FY) 11.66%
Basic EPS (TTM) 1.47

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 34.51%
Operating Margin (TTM) 83.33%

Management Effectiveness

Return on Assets (TTM) 6.38%
Return on Equity (TTM) 8.61%

Valuation

Trailing PE 14.88
Forward PE 9.14
Enterprise Value 2092898048
Price to Sales(TTM) 5.86
Enterprise Value 2092898048
Price to Sales(TTM) 5.86
Enterprise Value to Revenue 19.8
Enterprise Value to EBITDA -
Shares Outstanding 54816900
Shares Floating 52063441
Shares Outstanding 54816900
Shares Floating 52063441
Percent Insiders 4.12
Percent Institutions 33.13

Analyst Ratings

Rating 3
Target Price 22.81
Buy 1
Strong Buy 2
Buy 1
Strong Buy 2
Hold 4
Sell -
Strong Sell -
Strong Sell -

ai summary icon Upturn AI SWOT

Capital Southwest Corporation

stock logo

Company Overview

overview logo History and Background

Capital Southwest Corporation (CSWC) was founded in 1961 as a publicly traded investment company. It has evolved from a general investment firm to a business development company (BDC) focused on providing capital to middle-market companies.

business area logo Core Business Areas

  • Direct Investments: Provides first lien senior secured debt, unitranche debt, second lien debt, and minority equity investments to U.S. based middle market companies

leadership logo Leadership and Structure

Bowen Diehl serves as the President and CEO. The company is structured with an investment committee that oversees investment decisions.

Top Products and Market Share

overview logo Key Offerings

  • Debt Financing: Capital Southwest provides debt financing to middle market companies. The market share data is not publicly available in a clear number format. Key competitors include other BDCs and private credit funds. Competitors include Ares Capital Corporation (ARCC), Main Street Capital Corporation (MAIN), and Prospect Capital Corporation (PSEC).
  • Equity Investments: Alongside debt, Capital Southwest often makes minority equity investments. The specific revenue or user data attributed to this isn't publically available in a clear number format. Again, key competitors include Ares Capital Corporation (ARCC), Main Street Capital Corporation (MAIN), and Prospect Capital Corporation (PSEC).

Market Dynamics

industry overview logo Industry Overview

The BDC industry is driven by demand for capital from middle-market companies, which often face challenges accessing traditional financing. Interest rates, economic conditions, and regulatory changes influence the industry.

Positioning

Capital Southwest positions itself as a reliable capital provider for middle-market companies with a focus on disciplined underwriting and risk management.

Total Addressable Market (TAM)

The TAM for middle-market lending is substantial, estimated in the hundreds of billions of dollars. Capital Southwest targets a niche within this TAM, focusing on companies in specific industries and with strong management teams.

Upturn SWOT Analysis

Strengths

  • Experienced management team
  • Disciplined underwriting process
  • Strong track record of generating returns
  • Diversified investment portfolio

Weaknesses

  • Reliance on external financing
  • Exposure to credit risk
  • Sensitivity to interest rate changes
  • Potential for regulatory changes

Opportunities

  • Growing demand for capital from middle-market companies
  • Expanding investment opportunities in attractive industries
  • Potential for strategic acquisitions
  • Increasing investor interest in alternative investments

Threats

  • Economic downturn
  • Increased competition from other BDCs and private credit funds
  • Rising interest rates
  • Regulatory changes

Competitors and Market Share

competitor logo Key Competitors

  • Ares Capital Corporation (ARCC)
  • Main Street Capital Corporation (MAIN)
  • Prospect Capital Corporation (PSEC)

Competitive Landscape

Capital Southwest's advantages include its experienced management team and disciplined underwriting process. Disadvantages include its smaller size compared to larger BDCs.

Growth Trajectory and Initiatives

Historical Growth: Capital Southwest has experienced strong growth in its investment portfolio and net asset value over the past few years.

Future Projections: Analyst estimates suggest continued growth in earnings and dividends, driven by disciplined investment activity.

Recent Initiatives: Recent initiatives include expanding the investment team, focusing on larger investment opportunities, and raising additional capital.

Summary

Capital Southwest Corporation is a BDC with a strong history and experienced management team. The company benefits from its disciplined underwriting process and diversified investment portfolio. However, it faces risks associated with credit quality, interest rates, and regulatory changes. Overall the trend of financials indicate a strong company. CSWC must watch out for greater competition.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • SEC Filings
  • Company Website
  • Analyst Reports

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and may vary based on source.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Capital Southwest Corporation

Exchange NASDAQ
Headquaters Dallas, TX, United States
IPO Launch date 1990-03-27
CEO, President & Director Mr. Michael Scott Sarner CPA, CPA
Sector Financial Services
Industry Asset Management
Full time employees 30
Full time employees 30

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. The firm is Industry agnostic, but it prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and produc